Gift-card consumers should know what they're buying or receiving

September 24, 2006|YaVONDA SMALLS Tribune Staff Writer

What holiday gift do you buy this year for the parent who already has everything? Or for the new acquaintance who you just don't know very well? Or for the person who's so darn picky, there would be something wrong with anything you give them? As the holiday season approaches, gift cards can serve as an excellent alternative for consumers who don't want to rack their brains deciding on the perfect gift for those hard-to-shop-for people on their list. But before you dish out money on just any gift card this year, remember some may come with a catch. Why gift cards? Consumers spent $18 billion on gift cards during the 2005 holiday season, according to the Federal Trade Commission. So there's no question that gift cards are a popular gift idea this time of year. "What we find is that people love receiving gift cards," said Ellen Davis, spokesperson for the National Retail Federation. "People want to receive gift cards." Why? "You can select what you like," said South Bend resident Gail DeSomer. In fact, gift cards often give consumers an opportunity to buy something they wouldn't have bought themselves. Buying gift cards Before you decide to purchase any gift card, remembering several key pieces of advice may save you major headaches in the long run. A general rule of thumb when buying any gift card is to buy only from legitimate retailers rather than online auction sites, Davis said. That's because gift cards from online auction sites are more likely to be fraudulent. "They could be counterfeit," she said. "They could be a duplicate card." And before you decide on a specific card to buy, always read the fine print. That way, if you don't like the terms or conditions, you can shop elsewhere, says the FTC. Judy Reinhold, of Niles, said many consumers probably aren't aware of the terms and conditions cards have. "I think the general public doesn't check that kind of stuff," she said. Be sure to find out about expiration dates and fees attached to any gift card you buy. This information may appear on the card itself, on the the card's sleeve or envelope or on the issuer's Web site. If you're not careful, fees can quickly drain money from you without you even realizing it. For example, there may be shipping and handling fees, service fees, monthly maintenance fees, and the list goes on and on. If information about the card's overall terms and conditions is separate from the gift card, be sure to give it to the recipient to help protect the value of the card, advises the FTC. You may even want to give the original receipt to the recipient to verify the card's purchase in case it is lost or stolen. Using Gift Cards When you receive a gift card, being a smart consumer is the key to making the most of your gift. The first thing you should do is read its terms and conditions and expiration date. The FTC also suggests treating your card like it's cash -- if it's stolen, report it to the issuer immediately. Most issuers provide toll-free numbers where you can report cards that have been lost or stolen. While some issuers might not replace the card, others are willing to only if you pay a fee. Also, make an effort to use your card before it expires. And if your card expires before you have a chance to use it, you can try contacting the issuer. The issuer may extend the date, but may charge a fee to do so. Bottom line: Being smart when it comes to both buying and using gift cards can allow you to get the most of your gift-card experience this holiday season. After all, if you decide to give someone a gift card this year, you want the purchase to be worth it. "You want them to get their full benefit of their gift," Reinhold said. Staff writer YaVonda Smalls: yavsmalls@sbtinfo.com (574) 235-6248